As housing prices rise and mortgage rates rise, the U.S. real estate market struggles to move forward.

As housing prices rise and mortgage rates rise, the U.S. real estate market struggles to move forward. As the driving force of real estate sales, first-time homebuyers are still burdened with heavy student loans...

As housing prices rise and mortgage rates rise, the U.S. real estate market struggles to move forward. As the driving force of real estate sales, first-time homebuyers are still burdened with heavy student loans and face strict lending standards. Since the housing bubble burst in 2006-2009, there was a rebound in 2012 and much of 2013, but the market recovery began to slow last fall. In the past two years, the interest rate on a thirty-year mortgage has increased from 3.4% to 4.33%. Many purchasing customers were forced to lower their maximum target house prices. Some potential buyers don't even look. Nationwide, first-time buyers accounted for 30% of existing home sales in March, compared with a normal level of 40%. With student debt totaling more than $1 trillion nationwide and wages stagnating, many adults in their 20s and 30s are living with parents or friends. According to data released by the Census Bureau on Tuesday, only 423,000 new households were formed in the United States in the past year, less than half of the normal number (1 million). Lending standards, although loosened in recent months, remain quite strict. IHS Global Insight economist Patrick Newport said it's especially difficult for people with lower credit scores to get loans. Economists expect the housing market to eventually regain momentum as job and wage gains create more new households, credit conditions continue to ease and builders pick up the pace. But many economists expect the housing market's recovery to take longer than originally expected. Newport expects housing starts to reach 1 million this year for the first time since 2007 but not reach the normal level of 1.5 million until the fourth quarter of 2015. Meanwhile, the number of existing home sales this year is expected to be 4.9 million, down 3% from last year. According to an analysis by the National Association of Realtors, the biggest drag on existing home sales is rising home prices. In February this year, housing prices in 20 major cities in the United States had increased by 13% compared with a year ago, with Las Vegas and Los Angeles rising by about 20%. For more real estate information, please contact Jin Xin Real Estate Tinna 480-287-0180 E-mail: goldtrustrealty2010@gmail.com